Forestry Investment Risks
Planning & Preparation
As with any investment there will always be a number of risks to consider. Forestry risks are based on biological and natural incidents and we take every step to limit exposure to these.
According to the United States Department of Agriculture (USDA), 0.5% of all forestry is destroyed by fire, pests and disease etc. With managed forestry, the risk historically has been a lot lower at approximately 0.3%. Even so, we are happy to promise to restock any forestry that has been destroyed. The lumber at this time will be salvaged and sold on.
Fire
There have been very few forest fires in Canada and America; even so, we have special precautions in place to prevent serious damage to our forestry plantations if ever there was a fire. We plan our plantations with appropriate fire breaks.
Pests & Disease
There are a few well known pests and diseases that can affect our crops especially in the early years. Different species are planted side by side to minimize the risk of these pests spreading, our forest management teams know exactly what to look out for and how to treat any problems as soon as they occur.
Water is a vital resource in some areas that do not receive enough yearly rainfall and it is the first consideration when constructing a new forestry plantation within hotter areas. We make sure that there is always enough water being pumped into these areas to support effective growth.
Forest replant warranty
If for whatever reason the forestry crop fails at any time within the allotted investment term, we will replant the area free of charge. In addition, any lumber that can be salvaged will be sold and the gains will be returned to the investor minus a 10% fee payable to Greenwood Management.